Since 2005, my stock portfolio has achieved ~15% compound annual returns. That means that my portfolio doubles every 5 years or so, but I have down years too (e.g. 2018).

I’ve been investing in stocks since 2005 (age 18), and am a GARP Investor (GARP = Growth at a Reasonable Price). I don’t buy so-called “deep-value stocks”.

I don’t aim for explosive growth, because that would open me up to risk. I also only invest within my circle of competence and avoid cyclical industries, so that means no biotech, oil & gas, resource-based stocks. My focus is on consumer, technology/software, and diversified industries. My portfolio breakdown by company size:

Micro-Cap (10%) | Small/Mid-Cap (80%) | Large-Cap (10%)

I’m 80% allocated to Small/Mid-Cap stocks because I consider these companies “the sweet spot” in the stock market. They’ve established a successful business model, and still have a large addressable market to apply that formula. Plus, these companies achieve a high Return on Capital (ROIC), which is my golden standard operating metric.

However, my 10% allocation to MicroCaps will continue to grow over time, as some of these “incubating” small companies in my portfolio continue to grow.

Regards,
Robin

Disclaimer (Please Read): Robin Speziale is not a registered advisor. This content on the website robinspeziale.com does not contain any financial advice or stock recommendations. Please conduct your own research and consult a professional. Investing involves risk, including loss of principal.